Tax time is mandatory, and no one is above it. Every year, businesses in the Philippines are required to submit tax returns to the Bureau of Internal Revenue (BIR). Filing taxes enable them to know if they owe additional taxes or eligible for tax returns.
For those who don’t pay their taxes, it’s against the law to do so. In the Philippines, tax evasion cases, once proven guilty, can lead to a fine between ranging from ₱30,000 to ₱100,000, different penalties, and imprisonment of two to four years.
Tax obligations always come with a business. So, here are ways on how to avoid unwanted tax season trouble.
One of the mistakes business owners make is not planning for the effects of tax decisions in the coming years. Some are too focused on growing their business that they don’t think about how to handle taxes properly.
If you want to streamline your tax preparations, better start changing your habits now.
Schedule Bookkeeping Sessions
Mistakes happen, but it shouldn’t be with the numbers. Wrong declaration of taxes will only lead you to legal trouble. So, better think twice if you’re leaving the bookkeeping last minute.
If you don’t want to have more work done last minute, schedule a time every week or 2 weeks to record to transactions to make the load lighter.
Another option is getting an accounting expert in the field through Philippine accounting services. Aside from recording your transactions, accountants can also guide you through tax compliance from start to finish.
Submit Due Diligence on Time
Yearly, businesses and even freelancers prepare for tax season during April 15 of the year. Failure to do so will only lead to legal trouble.
As a business owner, the process may be daunting, but many resources teach the process. What is vital is scheduling your bookkeeping sessions as well as understanding the rules and repercussions of taxes.
Stay Updated to Changes
The Philippines have adopted the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which increased the revenue for the government’s social services and infrastructure programs. The new law also reduced personal income taxes but raised in other taxes, such as cars, tobacco, sugar-sweetened drinks, petroleum products, and other non-essential goods.
For entrepreneurs, these changes offer drastic price changes as well as tax information. Not staying updated will only lead to filing the wrong tax information. Of course, the ending of not submitting tax information is legal trouble.
Stay out of trouble and tax stress. Some providers offer a helping hand in assisting day-to-day accounting tasks and submission of due diligence.
Established by seasons accounting veterans, JCSN Accounting Services offers philippine accounting services through a timely and accurate manner. Through the combination of skill and technology, we ensure in streamlining your business registration, tax filing, payroll services, and bookkeeping needs.
Get started in focusing more on your business. Let JCSN handle the numbers. Call +63 2 8247961 or +63 906 5586469 or email firstname.lastname@example.org to get in touch with us.